Dr Reddys expects to launch open offer for OctoPlus in Dec

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Drug firm Dr Reddy's Laboratories today said it expects to launch a public offer in December to acquire all outstanding shares of Netherlands-based OctoPlus. "It is currently expected that the offer will be launched mid December 2012. If launched, the offer period will run for at least eight weeks and no more than ten weeks," Dr Reddy's Laboratories Ltd (DRL) said in a filing to the BSE today.

Closing of the transaction is expected to occur in first quarter of 2013, it said. It may be recalled that last month, in a statement, the company had said: "Dr Reddy's currently holds an irrevocable commitment from shareholders representing over 50 per cent of OctoPlus's issued and outstanding shares. Further the Executive Board and the Supervisory Board of OctoPlus have unanimously recommended the offer to the remaining shareholders".

The Hyderabad-based firm had also announced in October that it will acquire OctoPlus NV, a speciality pharmaceutical company, for about 27.4 million euros (about Rs 193 crore). As part of the deal, the companies agreed that DRL or a wholly owned subsidiary of DRL will make a public offer for all issued and outstanding ordinary shares in the capital of OctoPlus at an offer price of euro 0.52 in cash per share. The companies today said, in a joint statement, that the preparations for the offer were going on as planned.

"Dr Reddy's and OctoPlus hereby announce that preparations for the offer, including preparations in respect of the offer memorandum and obtaining approval from the Netherlands Authority for the financial markets for the offer are proceeding as planned," the companies said. Shares of Dr Reddy's Laboratories today closed at Rs 1,757.35on the BSE, up 1.83 per cent from its previous close.